The Bradford Company issued 8% bonds, dated January 1, with a face amount of $70 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.

The Bradford Company issued 8% bonds, dated January 1, with a face amount of $70 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2021 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Debit Credit 1 70,000,000 Date General Journal January 01, 2021 Investment in bonds Discount on investment in bonds Cash c 2 June 30, 2021 Cash Discount on investment in bonds Interest revenue 3 December 31, 2021 Cash Discount on investment in bonds Interest revenue Journal entry worksheet Record the interest revenue on June 30, 2021. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Cash Discount on investment in bonds Interest revenue Record entry Clear entry View general journal Journal entry worksheet